Federal Register of Legislation - Australian Government

Primary content

Rules/Other as made
This rule amends the Carbon Credits (Carbon Farming Initiative) Rule 2015 to detail additional minor administrative procedures under the CFI Act, including the variation of declarations and project areas, revocation of declarations, restructuring offset projects and relinquishment requirements.
Administered by: Environment
Registered 31 Jul 2015
Tabling HistoryDate
Tabled Senate10-Aug-2015
Tabled HR10-Aug-2015
Date of repeal 02 Aug 2015
Repealed by Division 1 of Part 5A of the Legislative Instruments Act 2003
Table of contents.

 

Carbon Credits (Carbon Farming Initiative) Amendment Rule 2015 (No. 1)

I, Greg Hunt, Minister for the Environment, make the following rule.

Dated 14 July 2015

Greg Hunt

Minister for the Environment

 

  

  


Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

Schedule 1—Amendments                                                                                                                          2

Carbon Credits (Carbon Farming Initiative) Rule 2015                                                               2

 


1  Name

                   This is the Carbon Credits (Carbon Farming Initiative) Amendment Rule 2015 (No. 1).

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

1 August 2015.

1 August 2015

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under the Carbon Credits (Carbon Farming Initiative) Act 2011.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendments

  

Carbon Credits (Carbon Farming Initiative) Rule 2015

1  Subsection 4(1)

Insert:

Aboriginal land council, for an area of land, means a body corporate that:

                     (a)  is established under a Commonwealth, State or Territory Act for the purpose of holding, for the benefit of Aboriginal peoples or Torres Strait Islanders:

                              (i)  title to land vested in it by or under that Act; or

                             (ii)  an estate or interest in land granted under that Act; and

                     (b)  has functions relating to land that under a law of the Commonwealth, a State or a Territory is land rights land; and

                     (c)  consists of Aboriginal people or Torres Strait Islanders who:

                              (i)  live in an area to which one or more of the body’s functions relate; or

                             (ii)  are registered as traditional owners of land in an area to which one or more of the body’s functions relate; or

                            (iii)  have an association with an area to which one or more of the body’s functions relate if the persons or Islanders are accepted as members of the land council on the basis of that association.

audit notice means a notice given to a person under subsection 214(2) of the Act.

authorised representative has the same meaning as in the Registry Regulations.

2  Subsection 4(1) (definition of CFI Mapping Guidelines)

Repeal the definition, substitute:

CFI Mapping Guidelines means the document entitled “Carbon Farming Initiative (CFI) Mapping Guidelines”, published by the Department and as in force from time to time.

Note:          The guidelines could in 2015 be viewed on the Department’s website (http://www.environment.gov.au).

3  Subsection 4(1)

Insert:

integrated photovoltaic luminaire unit means an assembled unit that:

                     (a)  contains the following things:

                              (i)  one or more luminaires;

                             (ii)  batteries;

                            (iii)  photovoltaic cells; and

                     (b)  is not connected to an electricity grid.

4  Subsection 4(1) (definition of Registry account)

Repeal the definition.

5  Subsection 4(1)

Insert:

relevant area has the meaning given by subsection 57(1) of the Act.

transferee offsets project has the meaning given by subsection 57(1) of the Act.

transferor offsets project has the meaning given by subsection 57(1) of the Act.

6  After section 4

Insert:

4A  Crown lands Minister

                   For paragraphs (a) to (d) of the definition of Crown lands Minister in section 5 of the Act, the following table sets out the Crown lands Minister in relation to each State and Territory.

 

Crown lands Minister in relation to each State and Territory

Item

State or Territory

Crown lands Minister

1

New South Wales

Whichever of the following applies:

(a) for an area to which the Crown Lands Act 1989 (NSW) applies—the Minister who administers that Act;

(b) for an area to which the Western Lands Act 1901 (NSW) applies—the Minister who administers that Act.

2

Victoria

The Minister who administers Part 5 of the Climate Change Act 2010 (Vic.).

3

Queensland

The Minister who administers the Land Act 1994 (Qld) (other than subsections 452A(2) and (3) of that Act).

4

Western Australia

The Minister who administers the Land Administration Act 1997 (WA).

5

South Australia

The Minister who administers the Crown Land Management Act 2009 (SA).

6

Tasmania

The Minister who administers the Forestry Rights Registration Act 1990 (Tas.).

7

Australian Capital Territory

The Minister who administers the Land Titles Act 1925 (ACT).

8

Northern Territory

The Minister who administers the Crown Lands Act (NT).

9

Jervis Bay Territory, and all external Territories

The Minister who administers the Jervis Bay Territory Acceptance Act 1915.

 

4B  Specified statutory authorities

                   For subparagraph (d)(ii) of the definition of statutory authority in section 5 of the Act, the following are specified:

                     (a)  an Aboriginal Land Council as defined in subsection 4(1) of the Aboriginal Land Rights Act 1983 (NSW);

                     (b)  a Trust as defined in section 2 of the Aboriginal Lands Act 1970 (Vic.);

                     (c)  a land trust as defined in:

                              (i)  Schedule 1 to the Aboriginal Land Act 1991 (Qld); or

                             (ii)  Schedule 1 to the Torres Strait Islander Land Act 1991 (Qld);

                     (d)  the Aboriginal Lands Trust established by subsection 20(1) of the Aboriginal Affairs Planning Authority Act 1972 (WA);

                     (e)  the Aboriginal Lands Trust constituted under subsection 5(1) of the Aboriginal Lands Trust Act 1966 (SA);

                      (f)  the Anangu Pitjantjatjara Yankunytjatjara as defined in subsection 4(1) of the Anangu Pitjantjatjara Yankunytjatjara Land Rights Act 1981 (SA);

                     (g)  the Maralinga Tjarutja as defined in section 3 of the Maralinga Tjarutja Land Rights Act 1984 (SA);

                     (h)  the Council as defined in section 3 of the Aboriginal Lands Act 1995 (Tas.).

7  After section 5

Insert:

5A  Electronic notices transmitted to Regulator

             (1)  For subsection 7(2) of the Act, an electronic notice must be transmitted using the Regulator’s website.

             (2)  The electronic notice must be transmitted by:

                     (a)  an individual who is a registered holder of the Registry account to which the notice relates; or

                     (b)  an authorised representative of the registered holder who has been given access to a Registry account under subregulation 31(2) of the Registry Regulations.

8  After section 11

Insert:

11A  Australian carbon credit units purchased by the Commonwealth under carbon abatement contracts

             (1)  For paragraph 20H(1)(a) of the Act, Australian carbon credit units purchased by the Commonwealth under a carbon abatement contract must be transferred to the Commonwealth registry account designated as the Commonwealth Emissions Reduction Fund Delivery Account.

Note:          Australian carbon credits units cannot be transferred to the Commonwealth Emissions Reduction Fund Delivery Account from another Commonwealth registry account that is used for the purposes of delivering or cancelling Australian carbon credit units.

             (2)  For paragraph 20H(1)(c) of the Act, Australian carbon credit units transferred to the Commonwealth Emissions Reduction Fund Delivery Account must be cancelled as soon as practicable after the units are transferred to the account.

11B  Approving forms for the conduct of carbon abatement purchasing process

                   The Regulator may, in writing, approve one or more forms for the purposes of conducting carbon abatement purchase processes.

9  Subsection 13(3)

Repeal the subsection.

10  After section 20

Insert:

20A  Eligibility requirement—project area not to be used to offset or compensate for adverse impact on vegetation

                   For paragraph 27(4)(l) of the Act, an eligibility requirement is that the project area, or any part of it, is not used to meet an obligation under a Commonwealth, State or Territory law to offset or compensate for the adverse impact of an action on vegetation.

11  Paragraph 21(4)(b)

After “generation unit”, insert “(other than the installation of an integrated photovoltaic luminaire unit)”.

12  At the end of subsection 21(4)

Add:

Note:          For the meaning of integrated photovoltaic luminaire unit, see subsection 4(1).

13  After Division 2 of Part 3

Insert:

Division 2AVariation of declaration of eligible offsets project

Subdivision AOperation of this Division

22  Operation of this Division

                   For subsections 29(1), 30(1) and 31(2) of the Act, this Division specifies when a declaration made under section 27 of the Act in relation to an offsets project may be varied, and matters relating to how a person applies for a declaration to be varied.

Subdivision BVoluntary variation of declaration of eligible offsets project

23  Project area (or project areas)

When Regulator may vary declaration

             (1)  On receiving an application under subsection (3), the Regulator may vary a declaration under section 27 of the Act in relation to an area‑based offsets project, so far as the declaration identifies the project area (or project areas), if the Regulator is satisfied:

                     (a)  of the matters mentioned in paragraphs 27(4)(a), (b), (c), (e), (f), (g), (l) and (m) and subsections 27(10) and (11) of the Act in so far as they are relevant to the project and proposed varied project area; and

                     (b)  that the project meets the additionality requirements set out in subsection 27(4A) of the Act in relation to the part of the proposed varied project area that is not part of the existing project area or part of the project area of another offsets project immediately before the application is made; and

                     (c)  if the declaration relates to a sequestration offsets project—that each person (other than the applicant) who holds an eligible interest in the proposed varied project area has consented, in writing, to the making of the application (see subsection (2)); and

                     (d)  if the declaration relates to a sequestration offsets project and the proposed variation would remove from the project area for the project an area of land for which Australian carbon credit units have been issued under Part 2 of the Act in relation to the sequestration of carbon in that land—that the area of land to be removed from the project area becomes, or becomes part of, the project area, or any of the project areas, for another eligible offsets project that is a sequestration offsets project; and

                     (e)  if the application relates to a project that is a 100‑year permanence period project—that the proposed variation would not result in the project area for the project being moved to a 25‑year permanence project; and

                      (f)  if the applicable methodology determination for the project is the original methodology determination for the project because of section 125, 126 or 127 of the Act—that the proposed variation would not result in an area of land that is not part of the existing project area:

                              (i)  being included in the project area; or

                             (ii)  becoming a new project area for the project; and

                     (g)  if the applicable methodology determination for the project is a methodology determination that was revoked by section 5 of the Carbon Credits (Carbon Farming Initiative—Superseded Methodology Determinations—Revocation and Transitional Provisions) Instrument 2015 and that continues to apply to the project because of section 6 of that instrument—that the proposed variation would not result in an area of land that is not part of the existing project area:

                              (i)  being included in the project area; or

                             (ii)  becoming a new project area for the project.

             (2)  A consent mentioned in paragraph (1)(c):

                     (a)  may be set out in a registered indigenous land use agreement (if applicable); or

                     (b)  if the consent is not set out in a registered indigenous land use agreement—must be in the approved form.

Application to vary declaration

             (3)  The application must be made by the project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant, and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  for each project area of the project being varied:

                              (i)  a description of its geographical location; and

                             (ii)  its street address; and

                            (iii)  its lot numbers and land title details; and

                            (iv)  its local government area;

                     (d)  the name and date of any natural resource management plan covering the proposed varied project area and details about whether the project is consistent with the plan despite the proposed variation to the project area;

                     (e)  information that shows that the applicant has the legal right to carry out the project in the proposed varied project area;

                      (f)  details of how the project, if conducted on the proposed varied project area, meets the requirements of the methodology determination that the project is covered by;

                     (g)  details of how the project meets the additionality requirements set out in subsection 27(4A) of the Act in relation to the part of the proposed varied project area mentioned in paragraph (1)(b);

                     (h)  a statement that all requirements mentioned in subsections 27(4) to (11) of the Act that are relevant to the project and the proposed varied project area have been met;

                      (i)  if one or more regulatory approvals are required for the project—for each approval:

                              (i)  a description of the approval, including the name of the regulatory authority responsible for issuing the approval; and

                             (ii)  whether or not the approval has been issued; and

                            (iii)  the applicant’s authorisation that the Regulator may contact the regulatory authority to discuss whether the approval has been issued; and

                            (iv)  if approval has not been issued, details of what actions the applicant has taken, or is taking, to obtain the approval; and

                             (v)  if the approval has been issued, any reference number or other identifier for the approval;

                      (j)  a geospatial map of the amended project area in accordance with the CFI Mapping Guidelines;

                     (k)  if the consent of each person who holds an eligible interest in the varied project area is required to be obtained—a statement that the relevant consents have been obtained;

                      (l)  if, as a result of the variation, subsection 57(1) of the Act applies to the project—an estimate of how many Australian carbon credit units would have been issued under Part 2 of the Act in relation to any sequestration occurring on the relevant area between:

                              (i)  the end of the last reporting period for the project; and

                             (ii)  the time when the relevant area ceases to be part of the project area;

                    (m)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Note:          For the meaning of relevant area, see subsection 4(1).

             (4)  For paragraph (3)(l), the estimate must only be provided for the transferor offsets project.

Timing

             (5)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 26 in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (6)  If the Regulator varies the declaration, the Regulator must, as soon as practicable after varying the declaration, give a copy of the variation to:

                     (a)  the applicant; and

                     (b)  if the varied declaration relates to a sequestration offsets project—the relevant land registration official for the project.

Refusal

             (7)  If the Regulator refuses to vary the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

When variation takes effect

             (8)  A variation to the declaration takes effect on the day on which the next reporting period for the project begins.

24  Project proponent

When Regulator must vary declaration

             (1)  On receiving an application under subsection (2), the Regulator must vary a declaration made under section 27 of the Act in relation to an offsets project, so far as the declaration identifies the project proponent for the project, if the Regulator is satisfied that:

                     (a)  the new project proponent is the project proponent of the project within the meaning of the Act; and

                     (b)  the new project proponent passes the fit and proper person test; and

                     (c)  if the applicant is required to give security to the Commonwealth under subsection (3)—the applicant has given the required security to the Commonwealth.

Application to vary declaration

             (2)  The application must be made by the current project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  the name and contact details of the new project proponent;

                     (d)  if applicable, the nominee of the current and new project proponent;

                     (e)  the information and documents mentioned in Subdivision C of Division 1 of Part 3 (which deals with establishing the applicant’s identity) that would be required to accompany the application if the new project proponent was applying for a declaration of an offsets project as an eligible offsets project;

                      (f)  documents that show that the new project proponent has agreed to become, and has become, the project proponent of the project;

                     (g)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Regulator may require applicant to give security

             (3)  If the project is a sequestration offsets project, the Regulator may require the applicant to give security to the Commonwealth in relation to the fulfilment by the applicant of any requirements to relinquish Australian carbon credit units imposed on the applicant under Part 7 of the Act in relation to the project.

Timing

             (4)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 26 in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (5)  If the Regulator varies the declaration, the Regulator must, as soon as practicable after varying the declaration, give a copy of the variation to:

                     (a)  the applicant; and

                     (b)  if the varied declaration relates to a sequestration offsets project—the relevant land registration official for the project.

Refusal

             (6)  If the Regulator refuses to vary the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

When variation takes effect

             (7)  A variation to the declaration takes effect:

                     (a)  when the variation to the declaration is made; or

                     (b)  on an earlier day, after the day the declaration was made, if:

                              (i)  the Regulator makes a written determination specifying the day; and

                             (ii)  the person who made the application for the variation consents to the determination of the earlier day.

25  Removal of condition

When Regulator must remove conditions from declaration

             (1)  The Regulator must vary a declaration made under section 27 of the Act in relation to an offsets project to remove a condition mentioned in subsection 28(2) or 28A(2) of the Act if:

                     (a)  the Regulator receives an application under subsection (2); and

                     (b)  the Regulator is satisfied that the condition has been met.

Application to vary declaration

             (2)  The application must be made by the project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  if the declaration is subject to the condition mentioned in subsection 28(2) of the Act—a statement that all regulatory approvals for the project have been obtained and for each regulatory approval:

                              (i)  a description of the approval, including the name of the regulatory authority responsible for issuing the approval and any reference numbers or other identifies for the approval; and

                             (ii)  if requested by the Regulator, a certified copy of the approval; and

                            (iii)  the applicant’s authorisation that the Regulator may contact all relevant regulatory authorities for the project to discuss whether regulatory approvals have been obtained;

                     (d)  if the declaration is subject to the condition mentioned in subsection 28A(2) of the Act—a statement that written consent of each relevant interest‑holder has been obtained;

                     (e)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Timing

             (3)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 26 in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (4)  If the Regulator varies the declaration, the Regulator must, as soon as practicable after varying the declaration, give a copy of the variation to:

                     (a)  the applicant; and

                     (b)  if the varied declaration relates to a sequestration offsets project—the relevant land registration official for the project.

Refusal

             (5)  If the Regulator refuses to vary the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

When variation takes effect

             (6)  A variation to the declaration takes effect when the variation is made.

26  Regulator may request further information

             (1)  The Regulator may, by written notice, require a project proponent that has applied under section 23, 24 or 25 for the variation of a declaration to give to the Regulator further information in relation to the application, within the period specified in the notice.

             (2)  If the project proponent breaches the requirement, the Regulator may, by written notice, inform the project proponent that the Regulator:

                     (a)  refuses to consider the application; or

                     (b)  refuses to take any action, or any further action, in relation to the application.

27  Applicant may withdraw application

             (1)  A project proponent that has applied under section 23, 24 or 25 for the variation of a declaration may, by written notice given to the Regulator, withdraw the application at any time before the Regulator makes a decision on the application.

             (2)  The withdrawal does not prevent the project proponent from making a fresh application.

Division 2BRevocation of declaration of eligible offsets project

Subdivision AOperation of this Division

28  Operation of this Division

                   For subsections 32(1), 33(1), 34(1), 35(1), 36(1), 37(1), 38(1) and 139(1) of the Act, this Division specifies when a declaration made under section 27 of the Act in relation to an offsets project may be voluntarily or unilaterally revoked, and matters relating to how a person applies for a declaration to be revoked.

Subdivision BVoluntary revocation of declaration of eligible offsets project

29  Voluntary revocation of declaration of eligible offsets project—units issued

When Regulator must revoke declaration

             (1)  On receiving an application under subsection (2), the Regulator must revoke a declaration made under section 27 of the Act in relation to an offsets project to which one or more Australian carbon credit units have been issued in relation to the project if:

                     (a)  the Regulator is satisfied that Australian carbon credit units have been issued in relation to the project in accordance with Part 2 of the Act; and

                     (b)  if the project is a sequestration offsets project—the Regulator is satisfied that:

                              (i)  the applicant has, before making the application, voluntarily relinquished Australian carbon credit units equal to the net total number of Australian carbon credit units issued in relation to the project in accordance with Part 2 of the Act; and

                             (ii)  if the Australian carbon credit units voluntarily relinquished by the applicant included non‑Kyoto Australian carbon units—the number of non‑Kyoto Australian carbon credit units relinquished does not exceed the number of non‑Kyoto Australian carbon credit units issued in relation to the project in accordance with Part 2 of the Act.

Application to revoke declaration

             (2)  The application must be made by the project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  evidence that the project has been issued with one or more certificates of entitlement;

                     (d)  details of the type and number of Australian carbon credit units issued for the project;

                     (e)  if the project is a sequestration offsets project—evidence of the relevant matters mentioned in subparagraph (1)(b)(i) and (ii);

                      (f)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Timing

             (3)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 31 in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (4)  If the Regulator revokes the declaration, the Regulator must, as soon as practicable after revoking the declaration, give a copy of the revocation to:

                     (a)  the applicant; and

                     (b)  if the revoked declaration related to a sequestration offsets project—the relevant land registration official for the project.

Refusal

             (5)  If the Regulator refuses to revoke the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

30  Voluntary revocation of declaration of eligible offsets project—no units issued

When Regulator must revoke declaration

             (1)  On receiving an application under subsection (2), the Regulator must revoke a declaration made under section 27 of the Act in relation to an offsets project to which no Australian carbon credit units have been issued if the Regulator is satisfied that no Australian carbon credit units have been issued in relation to the project.

Application to revoke declaration

             (2)  The application must be made by the project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  a statement that no Australian carbon credit units have been issued for the project;

                     (d)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Timing

             (3)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 31 in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (4)  If the Regulator revokes the declaration, the Regulator must, as soon as practicable after revoking the declaration, give a copy of the revocation to:

                     (a)  the applicant; and

                     (b)  if the revoked declaration related to a sequestration offsets project—the relevant land registration official for the project.

Refusal

             (5)  If the Regulator refuses to revoke the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

31  Regulator may request further information

             (1)  The Regulator may, by written notice, require a project proponent that has applied under section 29 or 30 for the revocation of a declaration to give to the Regulator further information in relation to the application, within the period specified in the notice.

             (2)  If the project proponent breaches the requirement, the Regulator may, by written notice, inform the project proponent that the Regulator:

                     (a)  refuses to consider the application; or

                     (b)  refuses to take any action, or any further action, in relation to the application.

Subdivision CUnilateral revocation of declaration of eligible offsets project

32  Unilateral revocation of declaration of eligible offsets project

When declaration may be unilaterally revoked

             (1)  The Regulator may revoke a declaration made under section 27 of the Act in relation to an offsets project for a reason mentioned in column 1 of the following table if the requirements mentioned in column 2 of the item have been met.

 

Reason and requirements to unilaterally revoke declaration

Item

Column 1

Column 2

 

Reason

Requirements

1

Regulatory approvals for the project have not been obtained

All of the following must be met:

(a) the declaration is subject to the condition mentioned in subsection 28(2) of the Act (which deals with regulatory approvals being obtained for the project before the end of the first reporting period);

(b) the Regulator is satisfied that the condition has not been met;

(c) the Regulator has consulted the project proponent for the project in accordance with section 33;

(d) the 28‑day consultation period under section 33 has passed.

2

Consent from eligible interest holders has not been obtained

All of the following must be met:

(a) the declaration is subject to the condition mentioned in subsection 28A(2) of the Act (which deals with obtaining the consent of each person who holds an interest in the project area before the end of the first reporting period);

(b) the Regulator is satisfied that the condition has not been met;

(c) the Regulator has consulted the project proponent for the project in accordance with section 33;

(d) the 28‑day consultation period under section 33 has passed.

3

The project does not meet the requirements set out in paragraphs 27(4)(a) to (c) and (l) of the Act

All of the following must be met:

(a) the Regulator is satisfied that the project does not meet the requirements mentioned in paragraphs 27(4)(a) to (c) and (l) of the Act;

(b) the Regulator has consulted the project proponent for the project in accordance with section 33;

(c) the 28‑day consultation period under section 33 has passed.

4

The project proponent for the project ceases to pass the fit and proper person test

All of the following must be met:

(a) the project proponent for the project ceases to pass the fit and proper person test;

(b) 90 days pass after the cessation, and the person who, at the end of that 90‑day period, is the project proponent for the project does not pass the fit and proper person test;

(c) the Regulator has consulted the project proponent for the project in accordance with section 33;

(d) the 28‑day consultation period under section 33 has passed.

5

The person responsible for carrying out the project ceases to be the project proponent for the project

All of the following must be met:

(a) the person who is responsible for carrying out the project ceases to be the project proponent for the project;

(b) 90 days pass after the cessation, and the person who, at the end of that 90‑day period, is responsible for carrying out the project is not:

(i) the project proponent for the project; and

(ii) a person who passes the fit and proper person test;

(c) the Regulator has taken all reasonable steps to consult the project proponent for the project in accordance with section 33;

(d) the 28‑day consultation period under section 33 has passed.

6

False or misleading information was provided to the Regulator in relation to the project

All of the following must be met:

(a) the information was given by a person to the Regulator in connection with the project;

(b) the information was:

(i) contained in an application, or given in connection with an application, under the Act or this Rule; or

(ii) contained in an offsets report; or

(iii) contained in a notification given under Part 6 of the Act;

(c) the information was false or misleading in a material particular;

(d) the Regulator has consulted the project proponent for the project in accordance with section 33;

(e) the 28‑day consultation period under section 33 has passed.

7

Multiple project proponents fail to nominate a nominee in relation to the project

All of the following must be met:

(a) there are 2 or more project proponents (the multiple project proponents) for the offsets project;

(b) the multiple project proponents have nominated a person under subsection 136(2) of the Act;

(c)  the nomination ceases to be in force;

(d) 90 days pass after the cessation, and no new nomination under subsection 136(2) is made by the multiple project proponents;

(e) the Regulator has consulted the multiple project proponents for the project in accordance with section 33;

(f) the 28‑day consultation period under section 33 passed.

 

Notification of revocation

             (2)  If the Regulator revokes a declaration under subsection (1), the Regulator must, as soon as practicable after revoking the declaration, give a copy of the revocation to:

                     (a)  the project proponent for the project; and

                     (b)  if the revoked declaration related to a sequestration offsets project—the relevant land registration official for the project.

33  Consultation

             (1)  Before deciding to revoke a declaration made under section 27 of the Act in relation to an offsets project for a reason mentioned in column 1 of the table in subsection 32(1), the Regulator must:

                     (a)  give each project proponent for the project written notice of the proposed revocation; and

                     (b)  invite the proponent to make a submission about the proposed revocation within 28 days after the date of the notice.

             (2)  For subsection 32(1), the 28‑day consultation period is the period of 28 days after the notice is given.

Division 2CEligible interest in an area of land

34  Land transferable to an Aboriginal land council

                   For subsections 44(5A) and 45(5A) of the Act, an Aboriginal land council holds an eligible interest in an area of land if:

                     (a)  under a law of the Commonwealth, a State or a Territory, the Aboriginal land council makes a claim for the area of land to become land rights land; and

                     (b)  the Minister who administers the law makes a decision that the land become land rights land.

14  Paragraph 50(b)

Repeal the paragraph, substitute:

                     (b)  a project in relation to which the Carbon Credits (Carbon Farming Initiative—Reducing Greenhouse Gas Emissions from Fertiliser in Irrigated Cotton) Methodology Determination 2015 is the applicable methodology determination.

15  At the end of Part 3

Add:

Division 4Restructure of eligible offsets projects

51  Operation of this Division

                   For subsection 57(2) of the Act, this Division makes provision for adjustments relating to restructured eligible offsets projects.

52  Adjusting the net total number of Australian carbon credit units

Determination relating to transferor offsets projects or transferee offsets projects

             (1)  The Regulator may determine that, whenever it is necessary to work out the net total number of Australian carbon credit units issued in relation to the transferor offsets project, the Act has effect, in relation to the transferor offsets project, as if the net total number of Australian carbon credit units issued in relation to the project in accordance with Part 2 of the Act were decreased by the number specified in the determination.

             (2)  The Regulator may determine that, whenever it is necessary to work out the net total number of Australian carbon credit units issued in relation to a transferee offsets project, the Act has effect, in relation to the transferee offsets project, as if the net total number of Australian carbon credit units issued in relation to the project in accordance with Part 2 of the Act were increased by the number specified in the determination.

             (3)  If the Regulator has made a determination under subsection (1) or (2), the Act has effect in accordance with the determination.

Adjusting for reporting periods for which Australian carbon credit units have not been claimed

             (4)  If:

                     (a)  a project proponent for a transferor offsets project has given the Regulator an offsets report for the project for a reporting period; and

                     (b)  the offsets report was given to the Regulator before the relevant area ceased to be, or ceased to be part of, the transferor offsets project; and

                     (c)  the project proponent did not apply to the Regulator for the issue of a certificate of entitlement for the project for the reporting period;

the Regulator must, when making a determination under subsection (1) or (2), take into account the Australian carbon credit units that would have been issued under Part 2 of the Act for the reporting period had the proponent applied for, and been issued, a certificate of entitlement for the project for the reporting period.

Note:          For the meaning of relevant area, see subsection 4(1).

Adjusting for incomplete reporting periods

             (5)  The Regulator must, when making a determination under subsection (1) or (2), take into account the Australian carbon credit units that would have been issued for the sequestration of carbon in the relevant carbon pool on the relevant area during the period:

                     (a)  beginning on the day immediately following the end of the last reporting period; and

                     (b)  ending at the time the relevant area ceases to be part of the transferor offsets project.

Note:          The term relevant carbon pool is defined in section 5 of the Act.

Varying a determination

             (6)  The Regulator may vary a determination made under subsection (1) or (2) (the original determination) by remaking the determination if the Regulator receives:

                     (a)  in a case in which the Regulator took account of the matters mentioned in subsection (4) when making the original determination—an application for a certificate of entitlement for the relevant period; or

                     (b)  in a case in which the Regulator took account of the matters mentioned in subsection (5) when making the original determination—an application for a certificate of entitlement that covers the period mentioned in subsection (5).

53  Adjusting crediting period—transferee offsets project

                   The crediting period for a transferee offsets project ends at:

                     (a)  if the crediting period for the transferee offsets project ends later than the crediting period for the transferors offsets project—the end of the crediting period for the transferor offsets project; or

                     (b)  if the crediting period for the transferee offsets project ends earlier than the crediting period for the transferors offsets project—the end of the crediting period for the transferee offsets project.

54  Adjusting reporting period—transferee offsets project

             (1)  The reporting period during which an eligible offsets project becomes a transferee offsets project must not extend beyond the following times, whichever occurs first:

                     (a)  5 years after the start time of the reporting period for the transferee offsets project;

                     (b)  5 years after the start time of the reporting period for the transferor offsets project.

             (2)  In this section:

start time, in relation to the relevant reporting period for a transferor offsets project or a transferee offsets project, means:

                     (a)  the time at which the first crediting period for the project started; or

                     (b)  if at least one offsets report for the project has been given to the Regulator under section 76 of the Act—the time immediately after the end of the previous reporting period for the project.

16  After Division 3 of Part 6

Insert:

Division 3ADeclaration that offsets reporting requirements does not apply

80A  Regulator may declare offsets reporting requirements does not apply to project

When Regulator may make declaration

             (1)  For the purposes of subsection 77(1) of the Act, the Regulator may declare, in writing, that subsection 76(2) of the Act does not apply to an eligible offsets project if:

                     (a)  the Regulator receives an application under subsection (2); and

                     (b)  the project is a sequestration offsets project; and

                     (c)  the Regulator is satisfied that the project has reached its maximum carbon sequestration capacity.

Application

             (2)  The application must be made by the project proponent for the project and must be in the approved form and be accompanied by the following information or documents:

                     (a)  the name and contact details of the applicant and whether the applicant is:

                              (i)  the project proponent; or

                             (ii)  the nominee of multiple project proponents;

                     (b)  the unique project identifier for the project;

                     (c)  an explanation of how the project has reached its maximum carbon sequestration capacity;

                     (d)  an explanation of how any risks of reversal of sequestration during the remainder of the permanence period are to be managed;

                     (e)  a signed declaration by the applicant that the information included in, and the information and any documents accompanying the application:

                              (i)  meets the requirements in this subsection; and

                             (ii)  is accurate.

Timing

             (3)  The Regulator must take all reasonable steps to ensure that a decision is made on the application:

                     (a)  if the Regulator requested the applicant to give further information under section 80B in relation to the application—within 90 days after the applicant gave the Regulator the information; or

                     (b)  otherwise—within 90 days after the application was made.

Notification

             (4)  If the Regulator makes the declaration, the Regulator must, as soon as practicable after making the declaration, give a copy of the declaration to the applicant.

Refusal

             (5)  If the Regulator refuses to make the declaration, the Regulator must give the applicant written notice of the decision and the reasons for the decision.

80B  Regulator may request further information

             (1)  The Regulator may, by written notice, require a project proponent that has applied under section 80A for a declaration to give to the Regulator further information in relation to the application, within the period specified in the notice.

             (2)  If the project proponent breaches the requirement, the Regulator may, by written notice, inform the project proponent that the Regulator:

                     (a)  refuses to consider the application; or

                     (b)  refuses to take any action, or any further action, in relation to the application.

17  After Part 6

Insert:

Part 7Requirements to relinquish Australian carbon credit units

  

88  Requirement to relinquish—significant reversals relating to an event other than natural disturbances or conduct

                   For paragraph 90(1)(d) of the Act, a reversal of the removal of carbon dioxide from the atmosphere is taken to be a significant reversal if the size of the project area in which the reversal occurs is at least the smaller of:

                     (a)  5% of the total project area; or

                     (b)  50 hectares.

89  Requirement to relinquish—significant reversals relating to natural disturbances and conduct

                   For paragraph 91(1)(d) of the Act, a reversal of the removal of carbon dioxide from the atmosphere is taken to be a significant reversal if the size of the project area in which the reversal occurs is:

                     (a)  if the reversal is caused, or is likely to have been caused, by a natural disturbance—at least 5% of the total project area; or

                     (b)  if the reversal is caused, or is likely to have been caused, by conduct engaged in by a person other than the project proponent for the project—at least the smaller of:

                              (i)  5% of the total project area; or

                             (ii)  50 hectares.

Part 9Methodology determinations

  

90  Request to approve application of methodology determination to a project with effect from the start of a reporting period

                   For paragraph 128(2)(c) of the Act, a request to approve the application of a specified methodology determination to the project with effect from the start of a reporting period must be accompanied by the following information:

                     (a)  the unique project identifier for the project;

                     (b)  the title of the applicable methodology determination made under section 106 of the Act for which the approval is being requested and the date the determination commenced;

                     (c)  if the applicable methodology determination has been varied under section 114 of the Act—the date the methodology determination was varied;

                     (d)  a description of the project;

                     (e)  a statement by the applicant that the project meets the requirements of the applicable methodology determination.

Part 10Multiple project proponents

  

91  Designation of nominee account

                   For paragraph 140(3)(c) of the Act, a request to designate an account as the nominee account for an eligible offsets project must be accompanied by the following information:

                     (a)  the nominee’s full name, date of birth (if an individual), and contact details;

                     (b)  the full name of the nominee’s authorised representative (if one has been nominated);

                     (c)  the project name for which the nomination is in force;

                     (d)  the nominee’s ABN, ACN, ARBN, and GST registration number (if any).

Part 11Australian carbon credit units

  

92  Transmission of Australian carbon credit units by operation of law

             (1)  For paragraph 153(2)(b) of the Act, the transferee must give the Regulator a certified copy of a document showing transmission of the title to the Australian carbon credit units to the transferee.

Example:    If an Australian carbon credit unit has been transmitted on the making of an order by a court, including a sequestration order, the evidence of the transmission would be a certified copy of the order.

             (2)  For subsection 153(3) of the Act, a declaration of transmission must:

                     (a)  be made in writing; and

                     (b)  identify the serial numbers of the Australian carbon credit units transmitted; and

                     (c)  set out the name, address and Registry account number of the transferor; and

                     (d)  set out the name, address and Registry account number (if any) of the transferee; and

                     (e)  include a brief description of the circumstances that resulted in the transmission; and

                      (f)  be signed by the transferee.

Note:          If the transferee does not already have a Registry account, the transferee must request that one be opened in the transferee’s name—see subsection 153(4) of the Act.

93  Transmission of Australian carbon credit units to a foreign account

                   For section 155 of the Act, Australian carbon credit units must not be transferred from a Registry account to a foreign account.

Part 15Relinquishment of Australian carbon credit units

  

94  Market value of Australian carbon credit units

                   For subsection 179(7) of the Act, the market value of an Australian carbon credit unit is the highest weighted average price for Australian carbon credit units that the Commonwealth has purchased as the result of carbon abatement purchasing processes that is published on the Regulator’s website.

Note:          Paragraph 163(b) of the Act provides that the Regulator may publish on the Regulator’s website the weighted average price for eligible carbon credit units that the Commonwealth is purchasing as a result of a carbon abatement purchasing process.

18  After Part 17

Insert:

Part 18Monitoring powers

  

102  Identity cards

                   For paragraph 197(2)(a) of the Act, an identity card issued to an inspector by the Regulator must display the following:

                     (a)  a statement that the cardholder is an inspector for the purposes of the Act;

                     (b)  the date of expiry of the card;

                     (c)  a statement that the inspector is authorised to exercise powers under Part 18 of the Act.

Note:          Paragraph 197(2)(b) of the Act requires the card to contain a recent photograph of the inspector.

Part 19Audits

  

103  Compliance audits—requirements for reimbursement

                   For paragraphs 214(9)(c) and (d) of the Act, a request to the Regulator for reimbursement of costs incurred in complying with an audit notice must be accompanied by the following information and documents:

                     (a)  the full name, contact details and bank account details of the person who received the audit notice;

                     (b)  the unique project identifier for the project to which the audit notice relates;

                     (c)  evidence of the costs incurred in complying with the audit notice;

                     (d)  a statement, supported by evidence, of the financial hardship caused by compliance with the audit notice;

                     (e)  if it has not already been submitted to the Regulator—the audit report;

                      (f)  a signed declaration that the specified information and documentation meets the requirements of this subsection and is accurate.